Cerrado Gold Inc · TSXV:CERT
Cerrado Gold — Investor Presentation (December 2024)
32 slides from Cerrado Gold's investor presentation, December 2024
Slide 1: Junior Producer Developing Potential World Class Assets
Junior Producer Developing Potential World Class Assets Corporate Presentation – December 2024 TSX.V:CERT OCTQX:CRDOF
Slide 2: Disclaimer
Disclaimer This presentation contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. All information contained in this news release, other than statements of current and hi
Slide 3: Investment Highlights
Cerrado Gold Investment Highlights Junior Producer Developing Potential Large-Scale World-Class Assets Heap leach development completed with debt reduction program and extensive exploration underway Steady State Gold Strong cash flows targeted to commence debt paydown Production Macro Economic
Slide 4: Option Agreement with Amarillo Mineração (Hochschild Mining)
Cerrado Gold OPTION AGREEMENT WITH AMARILLO MINERAÇÃO (Hochschild Mining) OPTION AGREEMENT SIGNED WITH AMARILLO MINERAÇÃO DO BRASIL LTDA FOR SALE OF THE MONTE DO CARMO GOLD PROJECT IN TOCANTINS, BRAZIL FOR TOTAL CONSIDERATION OF US$60 MILLION (~C$80 MILLION) US$45m Option Grant Consideration: • US$1
Slide 5: Capital Markets
Cerrado Gold Capital Markets Market Statistics Share Holder Register Share Price Dec 2, 2024 C$0.34 52 Week (Low – High) C$0.15 – C$0.75 Outstanding Shares 103.6m Management Options (avg strike C$1.00) 0.9m Warrants (avg strike C$0.91) 0.1m RSUs & DSUs 4.8m 25% Franklin Advisors Fully Diluted (m) 10
Slide 6: History of Leadership: Multiple mines built, expanded, restructured
Cerrado Gold History of Leadership: Multiple mines built, expanded, restructured : +25x return to founders and still growing : 2.4x for shareholders in under 2 years 4.0 Volume ('000s) SMT Share Price (C$) 270,000 2006 5.0x Production Growth Mar 2017 • Desert Sun acquired by Yamana for • Mark resign
Slide 7: North & South America
Cerrado Gold North & South America Minera Don Nicolas (100%) Santa Cruz, Argentina 56k Au-equiv. oz annual gold producer @approx. US$1,144 AISC Underexplored and extensive land package Macro economic shift underway in Argentina to the benefit of local producers Mont Sorcier (100%) Chibougama
Slide 8: Minera Don Nicolas: Stable Production and Cashflow in the Deseado Masiff
Minera Don Nicolas Stable Production and Cashflow in the Deseado Masiff TSX.V:CERT OCTQX:CRDOF
Slide 9: Extensive and Underexplored Land Package
Minera Don Nicolas Extensive and Underexplored Land Package Largest land package in the prolific Deseado Masiff (330K hectares) Steady state production of ~56koz Au equiv. per year through to 2028 Exploration to date has only focused on near mine targets Underground potential remains untappe
Slide 10: Positive PEA and Mineral Resource Estimate
Minera Don Nicolas Positive PEA and Mineral Resource Estimate 1 PEA Base Case Spot Average Annual Gold Equivalent Production (ounces) 55,869 55,784 Mine life (years) - Mine Plan start Date 1 April 2024 5.0 5.0 Total Gold Equivalent Production (ounces) 279,345 278,919 NPV @ 5% discount rate (millions
Slide 11: Positive PEA and Mineral Resource Estimate
Minera Don Nicolas Positive PEA and Mineral Resource Estimate Please see Appendix for full resource table and notes Grade Values Metal Content Mine Classification Tonnage Au Ag Au Ag kt g/t g/t k oz k oz Calandrias Sur ¹ M+I 12,834.40 0.97 15.34 400.72 6,328.98 (Open pit) Inferred 2,261.42 0.62 3.32
Slide 12: Track Record of Operational Improvement and Competitive Cost Base
Minera Don Nicolas Track Record of Operational Improvement and Competitive Cost Base Operating History Post Acquisition Lower Cost Producer in Argentina Amongst Peers Increased Production & Lower Cost AISC 2023 50-60,000 60,000 $2,000 52,504 51,688 $1,800 $1,734 $1,570 $1,581 50,000 $1,565 $1,600 $1
Slide 13: Well-Trodden Path to Production Growth and Resource Expansion
Minera Don Nicolas Well-Trodden Path to Production Growth and Resource Expansion 23% 9% 6Moz 13% 64% Underground continued to grow UG & HL contributed post acquisition majority of increase in 5.9Moz Resources 6.0Moz 14% 91% 13% 5Moz 5.2Moz 73% 14% MDN remains in the early stages of discovery 4.6Mo
Slide 14: CIL and Heap Leach Production
Minera Don Nicolas CIL and Heap Leach Production Las Calandrias HL Project Additional 165koz of lower grade resources Hub and Spoke Production Model added to the mine plan Additional 5 years of Paloma Calandrias (High-grade OP&UG) (HL) low-cost production at ~20-25koz per annum Calandrias Norte
Slide 15: Numerous Open Pit & Underground Opportunities
Minera Don Nicolas Numerous Open Pit & Underground Opportunities Goleta Paula Andrea Paloma Central 7 km from the plant High exploration 50 km form the plant Similar approach to potential, for deeper- Known shoots that Cerro Negro’s Marian- seated, large high- remain open under the San Mar
Slide 16: Underground Growth Opportunity
Minera Don Nicolas Underground Growth Opportunity Preliminary Testing of UG potential at Paloma pit NTD: Slide on the underground projects Drilling to date only to a vertical depth of 200 metres directly under the high-grade Paloma Pit Existing Pit provides direct access to the Underground for r
Slide 17: Mont Sorcier Iron: High Purity Iron in Top Tier Jurisdiction
Mont Sorcier Iron High Purity Iron in Top Tier Jurisdiction: Transition for the Green Steel Industry TSX.V:CERT OCTQX:CRDOF 17
Slide 18: Green Steel and Direct Reduction Iron
Mont Sorcier Project Green Steel and Direct Reduction Iron • PAYBACK High Purity 67% Iron Concentrates 2 YEARS significantly reduces green High Purity DRI Grade Iron For the UNDER house gas emission in steel production Green Steel Revolution • Significant price premium expected for 67% DRI grade mat
Slide 19: World Class Project, First World Location
Mont Sorcier Project World Class Project, First World Location Located 11km from Chibougamau, in Cree traditional territory, Quebec Site located only 25km from public rail head Mont Sorcier Chibougamau >300km of underutilized existing common carry rail line connected directly to ports Existi
Slide 20: Premium Product
Mont Sorcier Project Premium Product 67% Concentrate Grade + Low Deleterious Metals = High Purity Product High grade 67% Fe concentrate with <2.5% Silica and Alumina Combined Concentrate suitable for DRI and blast furnace-steel Production High grade material offers significant price premium an
Slide 21: Significant Resource in Place
Mont Sorcier Project Significant Resource in Place Updated Metallurgy Confirms Ability to Produce 67% Fe Concentrate with Sub 2.5% Silica & Alumina Resources Significant Indicated Resource in place to Backstop Feasibility Study Significant Additional Resources to support Future Expansion potenti
Slide 22: Preliminary Economic Assessment
Mont Sorcier Project Preliminary Economic Assessment PEA Summary (July 2022) $US Million Production Summary Unit LOM Total / Avg. LOM Magnetite Payable kt 104,303 PAYBACK UNDER 2 YEARS Annual Production Rate mtpa 5.0 Operating Costs Annual average EBITDA of US$348MM Total On-site Operating Costs U
Slide 23: Highlights Recap
Cerrado Gold Highlights Recap Why Invest? Steady State Gold Heap leach development completed for steady production of 50,000-60,000 oz Production 50-60k oz Per Annum Debt reduction program and extensive exploration underway Steady cash flow from Minera Don Nicolas to support ongoing exploratio
Slide 24: Appendix
Appendix TSX.V:CERT OCTQX:CRDOF
Slide 25: Leadership - Management
Cerrado Leadership - Management Mark Brennan, Chief Executive Officer, Chairman & Founder Mark Brennan is Cerrado Gold’s CEO and Co-Chairman. He is a Founding Partner and Executive Chairman of Ascendant Resources Inc. and Executive Chairman of Vanadium One Iron Corp., and has more than 30 years of f
Slide 26: Leadership - Management
Cerrado Leadership - Management Andrew Croal, P.Eng., Chief Technical Officer Mr. Croal is a Mining Engineer with 40 years of global mining experience in gold and base metal commodities. He is a versatile and practical mining professional with a proven track record of providing fit for purpose, work
Slide 27: Leadership - Management
Cerrado Leadership - Management Carl Calandra, LL.B., MBA, Vice President, General Counsel & Corporate Secretary Mr. Calandra is a legal executive with more than 15 years of advisory, deal-making and public company experience. Prior to joining Cerrado, Mr. Calandra was Vice President and General Cou
Slide 28: Leadership – Board of Directors
Cerrado Leadership – Board of Directors Mark Brennan, Chief Executive Officer, Chairman & Founder Mark Brennan is Cerrado Gold’s CEO and Co-Chairman. He is a Founding Partner and Executive Chairman of Ascendant Resources Inc. and Executive Chairman of Vanadium One Iron Corp., and has more than 30 ye
Slide 29: Leadership – Board of Directors
Cerrado Leadership – Board of Directors Robert Sellars, Director Mr. Sellars has 40 years experience in capital markets and financial services and has significant experience on investment industry committees within the IIROC. Mr. Sellars previously sat on the board of directors of Android Industries
Slide 30: Streaming Agreement
Streaming Agreement Argentina: Stream for Project Financing at Minera Don Nicolas Principal: US$25M Delivery of 6.5% Gold Equivalent ounces up to 29,500 ozs Step-Down after delivering 29,500 GEO to 2.5% Buy-Down option to reduce payments to 1.25% of GEO production Within 12 months followin
Slide 31: Mineral Resources: Minera Don Nicolas Project
Mineral Resources: Minera Don Nicolas Project Grade Values Metal Content Mine Classification Tonnage Au Ag Au Ag kt g/t g/t k oz k oz Measured 5,192.24 0.91 17.07 151.32 2,849.04 Calandrias Sur ¹ Indicated 7,642.16 1.02 14.16 249.40 3,479.94 (Open pit) M+I 12,834.40 0.97 15.34 400.72 6,328.98 Inferr
Slide 32: Mineral Resources: Notes to Mineral Resources
Mineral Resources: Minera Don Nicolas Project Notes to Mineral Resources Mineral Resource estimates were prepared by the May 10, 2014 edition of the Canadian Institute of Mining, Metallurgy and Petroleum (or CIM) Definition Standards for Mineral Resources and Mineral Reserves (“2014 CIM Definition S